Tuesday, March 13, 2018

My Dividend Goals

I want to have dividend yield in the 3% range and have my dividends grow faster than the rate of inflation. How have I done? The yield I have made on my portfolio of January 1 is in the first line. I looked at both dividend growth and Total Income Growth. This is because I have more than just stocks in my portfolio. I also have GICs, Money Market Funds and Savings Account. I have the latter things because I need some cash or near cash in the RIF for withdrawals.

So in 2017 I had a yield on the value of my portfolio of January 1, 2017 of 3.32%. The growth in dividend income was 5.45%. My Total Income Growth was 4.90%.

Action 2017 2016 2015 2014 2013
Dividend Yield 3.32% 3.75% 3.27% 3.41% 3.77%
Dividend Growth 5.45% 5.08% 7.61% 3.85% 10.53%
Total Income Growth 4.90% 4.57% 8.96% 4.99% 10.63%

My goal was different when I was building my portfolio. I wanted a lower dividend income yield but fast dividend increases. I changed my mind after the 2000 bear market. I was living off my portfolio and using the 4%, 8% rule. I was spending more than my income so I was taking out capital. At that time I decided to increase my dividend yield so I could life off my dividends. I planned to do this even if I sacrificed some dividend growth which I knew I would have to do.

On my other blog I wrote yesterday about Goodfellow Inc. (TSX-GDL, OTC-GFELF)... learn more. Next, I will write about Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF)... learn more on Wednesday, March 14, 2018 around 5 pm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

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